Because that will give you your most accurate readings. A lower gear will multiply the horsepower reading because it takes less power to turn the drive train in a lower gear. if you did it in overdrive it would decrease the power reading because overdrive is designed for fuel economy, not power. Hope this helps.
I would presume it's a benchmark. If everybody did different gear ratio's then you wouldn't have a constant and reliable means to collect data to compare to.
In other words if its a 4 speed you want it in 4th. If its a automatic you want it in third. No over drive. That would lug the engine and give inaccurate results. One to one ratio will be actual HP / torque.
so torque is not amplified/multiplied through gear reduction.
I tried to research this on the internet, but couldn't find the actual reason for why this is done.
basically, when a car or a bike is put on a dyno test, why should the test
should be performed in a gear with a ratio of 1:1 or as near as possible to
this ratio?
Any answers related to this would be appreciated